Agenda Item #21
School Board Property Insurance Policy Renewal
The request to grant the Superintendent authority to bind is necessary as the Board's property insurance policies will expire prior to the April 26, 2011 Board meeting, and negotiations for renewal will not be concluded before the March 22, 2011 Board meeting. The actual premium and terms for the district's property insurance policies will be presented to the Board as soon as negotiations with the insurance carriers are completed. Last fiscal year, the School Board was able to procure policies with thirteen (13) insurance carriers divided into five (5) separate layers of coverage for a total premium cost of $4,030,914.76. These policies include a $100,000 deductible for all perils except named windstorm. Named windstorms require a deductible equivalent to 5% of the appraised value for each building damaged subject to a minimum loss of $500,000 per storm. In the event of a loss, these policies would pay up to a maximum of $75,000,000 for all perils except named windstorm or hurricane which carry a maximum payment of $55,000,000. This renewal will require an additional budget allocation of up to $769,085.24 for a maximum $4,800,000 premium amount.
Grant the Superintendent this authority to bind the School Board's Property insurance and the School Board's Boiler and Machinery policies as of April 25, 2011 up to a maximum premium of $4,800,000.
Information - 3/8/2011
Consent after Information3/22/2011
Authority for Action
Board Policy 8710
Involves Expenditure of Funds Directly in the Classroom
Source of Funding
Operating - Other
Mark Langdorf, Director of Risk Management, Ext. 620
Judy Preston, Associate Superintendent of Financial Services, ext. 600